Question

The rate at which RBI gives loans to the commercial banks is ________.

• A. interest rate
• B. bank rate
• C. credit rate
• D. none of the above

Answer 1

The correct option is B bank rate

B. Bank Rate

Bank rate, also referred to as the discount rate in American English is the rate of interest which a central bank charges on the loans and advances to a commercial bank. The bank rate is known by a number of different terms depending on the country and has changed over time in some countries as the mechanism used to manage the rate have changed.